Big Take Argentina’s Economy Is Struggling. Why Is the White House Stepping In?
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Sep 25, 2025 In this engaging discussion, Patrick Gillespie, Bloomberg's Buenos Aires bureau chief, dives into the complexities of Argentina's economic crisis. He unpacks the surprising US support for President Milei, including a potential $20 billion swap line aimed at stabilizing the peso. Gillespie highlights the political turmoil behind Argentina's financial struggles and examines the geopolitical motivations for US involvement. He also critiques whether this support will be a temporary fix or lead to lasting change amid upcoming midterm elections.
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Unusual U.S. Rescue For Argentina
- The Trump administration publicly offered broad economic support for Javier Milei, including negotiating a $20 billion swap line with Argentina.
- Bloomberg's Patrick Gillespie says this is shocking locally because a unilateral U.S. rescue for Argentina is unprecedented.
How The Proposed Swap Line Works
- A swap line would let Argentina and the U.S. deposit equal amounts in each other's central bank accounts to act as a near-term buffer for the peso.
- Patrick Gillespie notes this is typically done by the Federal Reserve, so a Treasury-to-central-bank loan is unusual.
Exchange Stabilization Fund Background
- The Exchange Stabilization Fund (ESF) has been used historically for currency operations, including a $20 billion loan to Mexico in 1995.
- Gillespie highlights the U.S. has supported an IMF loan to Argentina already, but markets still want more firepower.